Australian Workers Get a Final Boost to Their Retirement Savings
Employers will now be required to pay the equivalent of 12% of workers' wages — the last scheduled increase to a number that's steadily climbed since the current superannuation system was created in the early 1990s. Back then, employers contributed the equivalent of 3% of wages.
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3 ASX Penny Stocks With Market Caps Larger Than A$80M
Australian shares are experiencing a positive trend, with the ASX 200 climbing towards new all-time highs, buoyed by recent decisions from the Reserve Bank. In such an encouraging market environment, identifying stocks that balance affordability with growth potential is key. While 'penny stocks' might seem like a term from another era, they remain relevant for investors seeking opportunities in smaller companies with solid financial foundations and promising prospects. Top 10 Penny Stocks In Australia Name Share Price Market Cap Financial Health Rating Alfabs Australia (ASX:AAL) A$0.41 A$117.5M ★★★★☆☆ EZZ Life Science Holdings (ASX:EZZ) A$2.21 A$104.25M ★★★★★★ GTN (ASX:GTN) A$0.39 A$74.36M ★★★★★★ IVE Group (ASX:IGL) A$2.99 A$461M ★★★★★☆ West African Resources (ASX:WAF) A$2.68 A$3.06B ★★★★★★ Regal Partners (ASX:RPL) A$3.00 A$1.01B ★★★★★★ Sugar Terminals (NSX:SUG) A$0.99 A$363.6M ★★★★★★ Austco Healthcare (ASX:AHC) A$0.365 A$133.41M ★★★★★★ CTI Logistics (ASX:CLX) A$1.82 A$146.59M ★★★★☆☆ Reckon (ASX:RKN) A$0.645 A$73.08M ★★★★☆☆ Click here to see the full list of 458 stocks from our ASX Penny Stocks screener. Here's a peek at a few of the choices from the screener. Adairs Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Adairs Limited is a specialty retailer offering home furnishings, furniture, and decoration products in Australia and New Zealand, with a market cap of A$387.07 million. Operations: The company's revenue segments comprise A$423.56 million from Adairs, A$125.34 million from Focus, and A$53.57 million from Mocka. Market Cap: A$387.07M Adairs Limited, with a market cap of A$387.07 million, shows mixed prospects as a penny stock. While operating cash flow covers its debt well and it trades at good value compared to peers, short-term and long-term liabilities exceed its assets. The company has experienced negative earnings growth over the past year, though earnings are forecasted to grow by 12.6% annually. Despite having high-quality earnings and no significant shareholder dilution recently, Adairs faces challenges with an inexperienced management team and board. Its net debt to equity ratio is satisfactory, but dividend sustainability remains unstable due to inconsistent payouts. Unlock comprehensive insights into our analysis of Adairs stock in this financial health report. Learn about Adairs' future growth trajectory here. Cogstate Simply Wall St Financial Health Rating: ★★★★★★ Overview: Cogstate Limited is a neuroscience technology company that creates, validates, and commercializes digital brain health assessments for academic and industry-sponsored research, with a market cap of A$302.20 million. Operations: Cogstate generates revenue from two main segments: Healthcare (including Sport), which contributes $2.98 million, and Clinical Trials (including Precision Recruitment Tool & Research), accounting for $44.22 million. Market Cap: A$302.2M Cogstate Limited, with a market cap of A$302.20 million, presents a compelling case in the penny stock segment due to its strong financial fundamentals and recent performance. The company is debt-free, with short-term assets significantly exceeding both short and long-term liabilities. Earnings have grown by 33.3% over the past year, surpassing industry averages, while profit margins have improved from last year. Despite a low return on equity of 16.6%, Cogstate's earnings are expected to grow by 14.58% annually. Recent guidance indicates revenue growth between 20% and 24% for FY25 compared to the previous year. Get an in-depth perspective on Cogstate's performance by reading our balance sheet health report here. Assess Cogstate's future earnings estimates with our detailed growth reports. Integrated Research Simply Wall St Financial Health Rating: ★★★★★★ Overview: Integrated Research Limited specializes in designing, developing, implementing, and selling systems and applications management software for business-critical computing as well as unified communication and payment networks, with a market cap of A$87.79 million. Operations: The company's revenue is primarily generated from its Software & Programming segment, totaling A$71.29 million. Market Cap: A$87.79M Integrated Research Limited, with a market cap of A$87.79 million, offers potential in the penny stock arena due to its recent profitability and robust financial position. The company has no debt, and its short-term assets significantly exceed liabilities. Despite a history of declining earnings over the past five years, Integrated Research became profitable last year and maintains high-quality earnings with a strong return on equity of 22.3%. However, challenges remain as earnings are forecasted to decline by 26.3% annually over the next three years. Recent product enhancements in cloud migration solutions may support future growth prospects. Dive into the specifics of Integrated Research here with our thorough balance sheet health report. Understand Integrated Research's earnings outlook by examining our growth report. Make It Happen Navigate through the entire inventory of 458 ASX Penny Stocks here. Seeking Other Investments? Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:ADH ASX:CGS and ASX:IRI. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 hours ago
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‘Burnt out': Big push for four-day week
Unions are calling for a major rethink of working hours amid rising burnout and stagnant productivity, but one minister warns the proposal may be little more than 'gaslighting' workers. The Australian Greens have thrown their support behind the Australian Council of Trade Unions' (ACTU) call for shorter working weeks with no loss of pay, urging the federal government to place the issue at the forefront of next week's Economic Reform Roundtable. The ACTU will propose that Australia move towards a four-day work week where appropriate while also adopting sector-specific alternatives where a full reduction isn't possible. These alternatives could include more rostered days off, increased annual leave or redesigned rosters that improve predictability, job security and work-life balance. Pay and conditions, such as penalty rates, overtime, and minimum staffing levels, would be protected to ensure workers do not lose income as a result. The unions argue that workers deserve to benefit from productivity gains and technological advances that have so far disproportionately favoured corporate profits over wages. ACTU president Michele O'Neil highlighted the benefits of shorter working hours for both workers and employers, explaining they lead to improved productivity and enable people to live 'happier, healthier, and more balanced lives'. 'Unions want all Australians to benefit from higher productivity, not just those with money and power,' Ms O'Neil said. 'Productivity growth does not automatically translate to higher living standards. If that were the case over the past 25 years, the average worker today would be around $350 a week better off. 'For workers in some sectors, shorter working hours can be delivered through moving to a four-day work week. For other people, this could be achieved through other ways, such as more time off or fairer rosters.' Ms O'Neil argued that in the age of AI, a fair approach means lifting living standards for everyone, rather than 'boosting corporate profits and executive bonuses'. The ACTU's campaign is backed by growing evidence. A peer-reviewed study published recently in Nature Human Behaviour found that a four-day work week boosted performance, reduced burnout, and improved employee health and retention. The study examined nearly 3000 employees across 141 organisations in Australia, New Zealand, Ireland, Canada, the UK, and the US. Trials both here and overseas have shown that well-planned four-day week implementations, where workers participate in redesigning workflows, can deliver significant productivity benefits. A 2023 Swinburne University study of 10 Australian companies trialling the four-day week found that productivity rose at 70 per cent of the firms and remained stable at the others. The Australian Greens have welcomed the ACTU's calls for shorter working weeks with the same pay, urging the government to prioritise the issue at its upcoming productivity roundtable. Greens senator Barbara Pocock pointed out that in recent decades, the profit share of GDP has grown while workers' share has steadily declined, explaining that workers are 'fed up and burnt out'. 'They've done unpaid overtime, suffered real wage cuts, and face an expectation of constant connection with their workplace,' Ms Pocock said. 'It's time for the workers to get their fair share.' Ms Pocock added that shorter work weeks helped reduce absenteeism, improved recruitment and retention and gave workers more time to balance their lives. She said Australia had already made advances in flexible working and remote work, making a four-day week the logical next step. However, not everyone is convinced by the unions' approach. Opposition small business, industrial relations and employment spokesman Tim Wilson described the announcement as a 'set-up'. 'The four-day push is the unions gaslighting workers, an ambit claim they know won't be delivered so the Treasurer can walk out of his tax hike summit and say he's being reasonable because he hasn't given business everything they want, nor the unions,' Mr Wilson told NewsWire. 'This is a set-up and they're playing everyone, so we are going to call it out. 'An honest conversation about employment laws should focus on raising living standards and workplace flexibility through partnerships. That's why the Coalition backs real flexibility.' Australian Chamber of Commerce and Industry chief executive Andrew McKellar responded cautiously to the proposal, suggesting the unions are focusing on dividing up benefits before addressing how to achieve productivity gains. 'Well, I think they're putting the cart before the horse, honestly,' Mr McKellar said. 'They are coming, I think, with an idea about how to divide up the benefits but without at this point suggesting anything that will actually get us there at that stage.' He urged the ACTU to come prepared with practical ideas to improve workplace effectiveness and reduce regulatory burdens, especially for small businesses. 'If you want to be able to get those benefits ... for businesses and for employees, then you've got to be coming with real suggestions, practical ideas about how to boost productivity,' Mr McKellar said. Referencing the Reserve Bank governor, Mr McKellar warned that low productivity led to low growth and lower living standards. He added that business was ready to engage at the roundtable with ideas to improve productivity but cautioned against focusing only on dividing benefits without addressing productivity. Error in retrieving data Sign in to access your portfolio Error in retrieving data
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2 hours ago
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Digital bank blasted over 'diabolical' savings change: 'Big reason we signed up'
Young Aussies are threatening to leave Up Bank after the popular bank announced it would introduce a new savings system from September. Up Bank is Australia's first mobile-only digital bank and has more than one million, mostly Gen Z and Millennial, customers. Up Bank, which is a subsidiary of Bendigo Bank, currently allows customers to earn a flat 3.85 per cent interest rate on all savings accounts. But from September 1, it will introduce a new system, 'Glow & Flow,' where customers can earn a higher 4.85 per cent interest rate if they don't touch their funds. If they make a withdrawal, that rate will drop to just 1.5 per cent. Hannah Elliott has been a customer of Up Bank for the last five years and told Yahoo Finance she was 'genuinely shocked' when she heard about the change and was now considering changing banks. RELATED Major warning after Aussie receives random $350 payment in her bank account Centrelink warning for downsizing Baby Boomers over 'special' retirement rule Westpac CEO admits bank was 'wrong' about branch closures 'Up Bank have always marketed themselves as an 'envelope system' style bank - a big reason so many of us joined in the first place," the 27-year-old said. "What they're proposing now completely undermines that approach." The 'envelope system', also known as 'cash stuffing', is a popular budgeting method where you divide your money into different categories or envelopes for different spending purposes, such as rent, groceries and household bills. Many Up Bank customers have said they used the bank's savers as a digital envelope system since they can open up to 50 saver accounts and earn interest. Elliott said this had 'transformed' the way she spent and saved her money. 'Personally, around 75 per cent of my 'savers' will only receive the lower flow rate of 1.5 per cent because I transfer out of them at least monthly,' she said. 'Up Bank already offered a slightly lower interest rate than competitors, and I was happy to accept that in exchange for their brilliant features. But now, it feels like we're being punished rather than supported. 'Sure, I could change my system to chase the higher Grow rate, but I've spent years building a setup that works perfectly for me and my brain. I've never had to adjust it in the past five years - until now.' Up Bank defends unpopular change An Up Bank spokesperson told Yahoo Finance it had introduced the new system to help customers 'maximise their savings potential, while also keeping the flexibility to access their money when they need it'. The bank said it wanted to help customers improve their financial wellbeing for the 'long haul', not just today, and argued the 'old system wasn't cutting it anymore'. It said the old system meant there was no incentive to split money between short- and long-term goals. It also noted it meant they couldn't offer stronger rates to customers wanting to grow their savings over time, and the system just wasn't 'sustainable' long-term. Mozo personal finance expert Kylie Moss told Yahoo Finance the change would 'ruffle some feathers' amongst existing customers. She said the one 'upside' to the change was that customers could earn a higher interest rate provided they met the more restrictive conditions. But this may take more mental gymnastics on the customer's part. 'The key to getting the highest interest returns will now be towards splitting Savers between Grow, medium-long term savings goals and closer management of Flow accounts to keep the balance in these accounts at a 'goldilocks level' - not too high they miss out on the higher interest, but not too low they regularly draw on funds in Grow accounts,' Moss said. 'Whether savers earn more or less on their savings will come down to how well customers shift their saving and spending behaviour to suit the new dual account set up.' 'So disappointed': Aussies threaten to switch banks A number of Up Bank customers have taken to social media to blast the change, with some labelling the change 'diabolical' and others a 'slap in the face' and threatening to change banks. 'The reason I've used Up is because of the multiple savings accounts and good interest rate … I'm looking elsewhere now,' one customer wrote. 'I've been with Up for many years and recommended them to a LOT of people... but this change completely flies in the face of the values that most of us came for, and stayed for. They'll lose a lot of customers over this - plus it really doesn't help any of us budget/save in a cost-of-living crisis,' another said. 'Time to get out! This isn't what we joined for,' a third said. Elliott said she was considering switching banks, but the problem was she couldn't find the same features elsewhere. 'No competitor offers both unlimited savers and paycheque splitting, for example. So now I have to choose what to compromise on: the flow rate, or the features I value most,' she said. Moss noted Up Bank was one of the few banks that allowed for multiple savings buckets or envelopes. 'It also has a lot of unique features available to help customers manage their cashflow and stay on top of savings goals like trackers, covers and auto transfers,' she said. BOQ's Future Saver account for 14 to 35 year olds currently offers the top ongoing savings rate on Mozo's database at 5.10 per cent. Customers can open up to 9 accounts for different savings goals. Westpac's Life account for 18 to 29 year olds has a 5 per cent bonus rate for customers who meet conditions. You can open up to six savings goals. ING Savings Maximiser offers a 5 per cent interest rate, but only one account is eligible for the bonus rate, while MOVE Bank's Growth Saver also offers a 5 per cent but you can't earn interest on multiple accounts.
